Business Law Question:

Bernstein owns a lot and wants to build a house according to a particular set of plans and specifications. She solicits bids from building contractors and receives three bids: one from Carlton for $160,000, one from Friend for $158,000, and one from Shade for $153,000. She accepts Shade’s bid. One month after beginning construction on the house, Shade contacts Bernstein and informs her that because of inflations and a recent price hike for materials, he will not finish the house unless Bernstein agrees to pay an extra $13,000. Bernstein reluctantly agrees to pay the additional sum. After the house is finished, however, Bernstein refuses to pay the extra $13,000. Discuss whether Bernstein is legally required to pay this additional amount.

Thank you for posting, we are glad to help people with real questions. This is obviously a home work question of some sort and also is a very basic business law knowledge.

Also part of the issue is, in law school it follows a common law issue or case law from current cases studied, in real life, it goes back to terms of actual contracts.

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